Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Council report shows Museum café behind forecast

Council report shows Museum café behind forecast

At a meeting of Rotorua District Council’s Operations & Monitoring Committee yesterday [15 May] the council called for a detailed review of the Museum Café operation within the next six months with a view to considering leasing the business to the private sector.

The decision followed presentation of a report on the financial performance of the Museum Café which shows it tracking behind forecast after nine months of the current financial year.

The report reveals the museum café was achieving a reasonable return on funds at 21%, but behind the 36% return estimated in the original business case prepared when the operation was purchased.

However the council says a number of measures are being developed to improve the café’s performance and bring it back on track.

The report, prepared by council finance manager Thomas Collé and chief financial officer (CFO) Dave Foster shows earnings (before interest, taxes, depreciation, and amortisation) for the nine months were $39,133 compared to a budget of $69,750.

The shortfall was primarily caused by wage costs being significantly ahead of budget, although that was slightly offset by a higher gross surplus from trading.

CFO Dave Foster said revenue was expected to be $10,000 under budget at the end of the financial year but the gross margin remained on track with the budget.

“At the current rate of earnings, it would take just under six years to achieve a full return on the funds the council invested to purchase the business, lease and chattels, compared to the business case estimate of approximately two and a quarter years.

“However a number of measures to improve the café’s overall financial performance are currently being reviewed, including staffing levels, opening hours, product wastage and pricing.

Mr Foster said getting the operation back on track and its returns up to expected levels would require only a marginal increase in sales, combined with a decrease in staffing costs.

“Under that scenario, the café could improve its annual return on funds to 36%, and this would provide a full return of funds invested within a three and a half year period.”

Mayor Steve Chadwick said the council was taking a wider look across all current operations and would be assessing whether they should continue to be involved in running businesses like the café.

“The progress report on the café’s current financial performance confirms what many of us thought at the time when the business was purchased on a decision made by the then-Executive Committee of Council. However we’ve moved on since then and I’ll ensure such important decisions will in the future be made by only the full council.”

[ENDS]


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future?

Certainly, at the end of this week, the next US President will have won office (at least in part) thanks to his proven ability at (a) scapegoating refugees and migrants (b) wooing neo-Nazis and racial supremacists (c) attacking journalists and judges (d) threatening to jail his opponents (e) urging nuclear proliferation and (e) by promising to restrict women’s rights to control their own fertility.

On the face of that campaign record, there wouldn’t seem to be much in common between Donald Trump and say, Spain’s centre-left populist party, Podemos. Yet arguably, the similarities could be instructive for the Labour/Green partnership here. More>>

 
 

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Liquor Sponsorship: Researchers Call For Ban On Alcohol Sponsorship Of Sport

“Due to alcohol sponsorship of sport, New Zealanders, including children, were exposed to up to 200 ads per hour they watched televised sport, and people watching football and tennis saw alcohol ads for almost half of each game,” says Associate Professor Signal. More>>

ALSO:

Mt Albert: Ardern For Labour, Genter For Greens

At the close of nominations, Jacinda Ardern was the sole nomination received for the position of Labour’s candidate for the Mt Albert by-election, says Labour General Secretary, Andrew Kirton. More>>

ALSO:

Earlier:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news